When it comes to "Meals and Entertainment" expenses, please remember that these transactions are subject to a 50% Tax Deduction. These expenses, according to the IRS, are both ordinary and necessary in carrying on a trade or business.

In your Profit and Loss statement, these expenses will show at their full value, whereas your Schedule C will only have 50% of the expense deducted. For more information on this, please see the following IRS article: